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Financial Dynamics, Development and Innovation in the Sugar Industry of Central and Eastern Europe (2013-2022)

Author

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  • Jaroslav Vlach

    (University of South Bohemia in České Budějovice, Faculty of Economics)

Abstract

This study explores the financial dynamics, strategic growth, and innovation within the sugar production sector in Central and Eastern Europe (CEE) over the period 2013-2022. It focuses on six countries-Czech Republic, Austria, Germany, Poland, Hungary, Slovakia and analyzes 14 major sugar-producing companies using a combined methodological approach based on time-series trend analysis and Principal Component Analysis (PCA). Key financial metrics such as capital structure, working capital, operating revenue, profitability, and employment are examined to assess differences in performance across firms and countries. The research is framed by three central questions that investigate the interaction between company size, financial stability, national market context, and development potential. A major turning point for the sector-the abolition of the EU sugar quota system in autumn 2017-marked the beginning of a fully liberalized market environment, intensifying global competition and reshaping regional production strategies. The results indicate that larger firms tend to provide financial stability but exhibit limited growth trajectories, while smaller companies are more adaptable and often demonstrate stronger development potential. National differences are also significant: the Czech Republic and Poland emerge as dynamic and competitive markets; Austria and Germany reflect mature industries with constrained growth prospects; Hungary and Slovakia show financial challenges yet offer opportunities for development. By identifying structural trends and regional disparities, the study contributes to a deeper understanding of the post-quota sugar market. It offers relevant insights for policymakers and industry leaders aiming to balance financial health, innovation, and sustainability in order to ensure the sector's long-term competitiveness in a volatile global economy.

Suggested Citation

  • Jaroslav Vlach, 2025. "Financial Dynamics, Development and Innovation in the Sugar Industry of Central and Eastern Europe (2013-2022)," Economics Working Papers 2025-01, University of South Bohemia in Ceske Budejovice, Faculty of Economics, revised 22 Apr 2025.
    • Handle: RePEc:boh:wpaper:01_2025
    DOI: 10.32725/ewp.2025.001
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    References listed on IDEAS

    as
    1. Stéphane Crépey & Lehdili Noureddine & Nisrine Madhar & Maud Thomas, 2022. "Anomaly Detection on Financial Time Series by Principal Component Analysis and Neural Networks," Working Papers hal-03777995, HAL.
    2. Dashan Huang & Fuwei Jiang & Kunpeng Li & Guoshi Tong & Guofu Zhou, 2022. "Scaled PCA: A New Approach to Dimension Reduction," Management Science, INFORMS, vol. 68(3), pages 1678-1695, March.
    3. St'ephane Cr'epey & Lehdili Noureddine & Nisrine Madhar & Maud Thomas, 2022. "Anomaly Detection on Financial Time Series by Principal Component Analysis and Neural Networks," Papers 2209.11686, arXiv.org, revised Oct 2022.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    principal component analysis; dynamics of the sugar market; financial stability; company development; equity; Central and Eastern Europe;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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